End of Year Tax Tips – Part 1

As we approach 2019, there are a few strategies to take advantage of before the end of the year to reduce your tax bill.

Tax-deferred Savings

The 2018 limit for elective deferrals to employer retirement plans (401(k), 403(b), etc.) is $18,500. If you’re over age 50 by the end of 2018, your limit is $24,500. Contact your payroll department to make sure you reach the limit by the end of the year.

Itemized Deductions

Changes in the tax code means that fewer people will benefit from itemized deductions. If you expect to fall slightly below the standard deduction threshold regularly, consider grouping itemized deductions into a single year. Your tax professional can help you determine what your 2018 itemized deductions might be and if you would benefit from the strategies described below: